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The Financial Information Unit wants to tighten control over cryptocurrency transactions

May 21, 2020

In Argentina, the Financial Information Unit (FIU) announced that it has launched an investigation to gather information about cryptocurrency holders. This was reported by El Cronista in an article published on May 20th.

In this media, they said that this action was taken to “update data on this type of operation and adjust the anti-money laundering and terrorist financing system.”

In addition, according to the publications, a number of subjects and companies have been instructed to report any transaction that could be considered suspicious.

The Financial Information Unit wants to tighten control over cryptocurrency transactions
The Financial Information Unit wants to tighten control over cryptocurrency transactions

The aforementioned body – according to El Cronista – warned of this “Operations on virtual assets have increased recently.”

Among the companies and entities that would now be required to monitor transactions in Argentina, the article mentioned the following:

  • Banks
  • Exchange houses
  • Stock trader
  • Investment funds
  • Other companies regulated by the central bank
  • insurer
  • Credit card operator
  • Flow carrier
  • Postal company
  • Customs broker
  • Art galleries
  • Economist
  • NGOs receive donations
  • Associations that regulate sporting activities

In addition, the FIU would have asked these companies “to be extremely careful with measures that could pose a threat to our country’s economic and financial order”.

Inflation, high taxes, restrictions and debts

Argentina’s economic history has been shocked in recent decades. The currency restrictions were added to the high tax pressures (one of the largest in the world) and inflation (also with figures that Argentina has among the highest inflation). All this mingled with the near-potential insolvency that the country maintains with external creditors.

This is how the FIU monitors itself. “”The order comes at a time when the government on various fronts is aiming to drain the parallel currency market and at all costs prevent foreign currencies from escaping the financial system because dollars are needed and the exchange rate is under pressure from people and businesses who want to get out of the peso as a savings currency”The article noted.

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